Times Group backed, Delhivery, a Gurgaon based logistics service provider has acquired the offline cash collection network of GharPay. Though the financials have not been disclosed, GharPay has confirmed that only its cash collection part of the company was picked-up.
GharPay was developed to primarily address one of the most important & challenging aspects e-Commerce; The Payment Stage. To promote the practice of buying online, web-businesses have to offer Cash On Delivery (COD) facility. COD mode of payment is wrought with immense risk for the web-store. This is where GharPay comes into picture. The Sequoia backed startup collects cash on behalf of e-commerce companies in case, mode of payment is not credit/debit or Internet banking.
GharPay is presently active in 17 Cities & claims to be working for 700 Clients including Times Internet, Fetise & others. The company employees about 250 ‘Collection Agents’ & promises to cover over 1000 Pin Codes across the country.
Why did Delihivery acquire GharPay’s facility?
Delhivery could have opted to pay GharPay to handle COD process, but then it would have to pay anywhere between 2–7% of the order as handling fees which GharPay usually charges other e-commerce players. The startup launched in 2011 by Arpit Mohan and Abhishek Nayak was seed-funded by Raju Reddy and Sequoia Capital. The company has even managed to add automated Interactive Voice Response (IVR) based offline payment methodology by tying-up with cloud telephony company Kookoo.
E-Commerce companies are steadily moving onto the marketplace model from inventory based one. Hence they will require all the expert help they can get to ensure each step of the business is handled expertly. Since GharPay promotes Pay After Receipt, it could certainly boost the appeal of e-commerce websites who avail Delhivery’s back-end logistics.
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Image Courtesy | iamwire